Selling a car - how to take payment?

[Big_Hitter]

Actually cash over 10k can be a "minor" problem. CTR's, SAR's... But if your bank knows you then it's usually not even mentioned...

good point, forgot about that

 

[CRLLS]

Cash transactions over $10k don't need to be deposited all at once. I don't know how much time must elapse before it triggers a flag somewhere. If someone knows, please respond. I would think the results of one car sale would not be a problem.

Even if some deposit(s) were to trigger a flag, it doesn't mean that the feds will automatically come and take all of your possessions. Now if you were depositing >$10K on the 1st day of every month, suspicions may be raised.

 

[OldShooter]

Yup. Meet at the bank. Another caution: Consider meeting at the DMV to transfer the title. I sold a car one time and they guy didn't bother to transfer the title. He also had a habit of collecting parking tickets. Fortunately in our state there is a little tear-off coupon on the title that the buyer signs and leaves with the seller. That was, literally, my Get-Out-of-Jail-Free card.

 

[W2R]

I go the expensive route to avoid all this hassle. Since I always buy my cars brand new from the dealer, I just trade in my old car. It becomes part of the negotiating process so how much I lose by doing this, is unknown.

Ask me if I care. It lowers my stress level and I only do it once in every 10-15 years. BTD

 

[idledancer]

I have sold and bought vehicles for cash multiple times. Once a buyer asked to pay with check and I told him I would retain the title and mail it to him after the check cleared. He elected to pay cash. I like the idea of meeting at the bank if cash is a problem.

I wouldn't let someone drive off with my car while I held the title. A bogus check can take weeks to bounce, even if your bank makes the funds available to you in a few days, they can easily claw it back.

 

[Livefree]

I go the expensive route to avoid all this hassle. Since I always buy my cars brand new from the dealer, I just trade in my old car. It becomes part of the negotiating process so how much I lose by doing this, is unknown.

Ask me if I care. It lowers my stress level and I only do it once in every 10-15 years. BTD

With this method, I believe you only pay sales tax on the difference between the trade in value, and the new car price, so you save some that way.

 

[W2R]

With this method, I believe you only pay sales tax on the difference between the trade in value, and the new car price, so you save some that way.

Oh cool! I didn't know that. Sales tax here is 9.2%.

 

[braumeister]

You need to look into that because states differ in how they treat it. In my state sales tax is paid on the full price of the car, regardless of trade-in credit.

 

[W2R]

You need to look into that because states differ in how they treat it. In my state sales tax is paid on the full price of the car, regardless of trade-in credit.

Here you go:

https://www.caranddriver.com/research/a31550807/louisiana-car-sales-tax/

How are car trade-ins taxed in Louisiana?
Louisiana does not require the value of your trade-in to be subjected to sales tax. For example, if you trade in your current vehicle and receive a $7,000 credit on a new vehicle that costs $20,000, you would only be required to pay sales tax on $13,000 for the new vehicle.

 

[braumeister]

Here you go:

https://www.caranddriver.com/research/a31550807/louisiana-car-sales-tax/

Sorry, that's not enough to get me to move.

 

[W2R]

Sorry, that's not enough to get me to move.

Believe me, I get it! I love living in Louisiana but all the "where to retire" articles say this is the worst place ever.

 

[Ronstar]

Wow - lots of great tips here. Thanks everyone. I'm definitely going to want to meet at the bank.

As to trading it in instead of selling - I'm buying a new Ford Bronco in Iowa from a dealer. Not sure when it will come in. Chances are it will be winter, and the corvette doesn't go out in the winter. So I'll sell the car this summer and drive my truck until the Bronco comes in.

I think Illinois law has recently changed - the tax on the purchase of a new vehicle is now on the amount of the new vehicle regardless if there was a trade in or not. The trade in value is no longer subtracted from the new vehicle amount in calculating tax. Dealers were lobbying to reverse this, but I don't know if that got done.

 

[CRLLS]

Wow - lots of great tips here. Thanks everyone. I'm definitely going to want to meet at the bank.

As to trading it in instead of selling - I'm buying a new Ford Bronco in Iowa from a dealer. Not sure when it will come in. Chances are it will be winter, and the corvette doesn't go out in the winter. So I'll sell the car this summer and drive my truck until the Bronco comes in.

I think Illinois law has recently changed - the tax on the purchase of a new vehicle is now on the amount of the new vehicle regardless if there was a trade in or not. The trade in value is no longer subtracted from the new vehicle amount in calculating tax. Dealers were lobbying to reverse this, but I don't know if that got done.

I heard that too. From what I can gather, starting Jan 1 2020, sales tax is charged on trade-in values over $10,000. I haven't bought a car in the last 2 years and do not think I ever traded in a car worth >$1,000.

 

[travelover]

When I bought my Casita travel trailer I found that the seller's credit union and mine were affiliated, so we went to their credit union and the cash was withdrawn from my account and transferred to theirs.

 

[rk911]

Last time I sold one I met the buyer at his bank and watched him get a bank check from the teller, which he then handed to me. Quick, easy and safe.

+1. we keep cars forever so the last one we sold was approx.15-yrs old. that was sold for $1500 cash. for $13K Braumeister is 100% right.

 

[youbet]

I only did this once, and same thing, we drove to her bank, did it all there, and then I handed her the keys.

I think it's a good, clear and signed title and bill of sale that the buyer would be worried about. Paying for a car and then having issues transferring the title later can be a real nightmare for the buyer, even with keys to drive it away!

 

[pb4uski]

Buyer met me at a branch of my bank that is co-located with a grocery store. He checked out the car and we took a test drive. He made me an offer, I countered and we agreed on price. He had cash. We went into my bank and I deposited the purchase price then signed over the title and gave him the keys.

 

[RetireeRobert]

Last time I sold one I met the buyer at his bank and watched him get a bank check from the teller, which he then handed to me. Quick, easy and safe.

+1

 

[Finance Dave]

I agree with meeting at their bank is best. Cashier's checks are relatively safe too...but under no circumstances would I accept any type of check from a non-local bank.

 

[Nick12]

I sold my car my 2011 Honda Accord with 60K miles in less than 24 hours. The buyer wanted to give me a check. I requested cash only. He went to the bank and gave me the amount in cash.

 

[Car-Guy]

Cash transactions over $10k don't need to be deposited all at once. I don't know how much time must elapse before it triggers a flag somewhere. If someone knows, please respond. I would think the results of one car sale would not be a problem.

Even if some deposit(s) were to trigger a flag, it doesn't mean that the feds will automatically come and take all of your possessions. Now if you were depositing >$10K on the 1st day of every month, suspicions may be raised.

At one time, I'd break up my cash transactions to try to avoid triggering CTR's... It got to be a PIA...

In the past few years, I'm sure my "hobbies" have caused a lot of CTR's to be generated by banks, and "other businesses"... (Maybe as many as ~25 in one year particular. And probably 5 to 10 each year for the past 5 years.) Hopefully no SAR's but I don't know that. I never got any follow-up calls, letters, or visits . It's no big deal,,,,,,,,, for an honest person.

 

[Music Lover]

Cash transactions over $10k don't need to be deposited all at once. I don't know how much time must elapse before it triggers a flag somewhere. If someone knows, please respond. I would think the results of one car sale would not be a problem.

Even if some deposit(s) were to trigger a flag, it doesn't mean that the feds will automatically come and take all of your possessions. Now if you were depositing >$10K on the 1st day of every month, suspicions may be raised.

For a one time cash deal I'd just deposit the money in one shot and not worry about it. They're looking for a pattern of money laundering and illegal activity, not someone selling a Camry for $11,000.

 

[Bamaman]

Last time I sold one I met the buyer at his bank and watched him get a bank check from the teller, which he then handed to me. Quick, easy and safe.

I agree. The other best option would be to do a wire transfer directly into your checking account.

The problem with getting cash is any deposit $10,000 or over will sound off bells to the Feds. All large cash deposits require filling out a form at any financial institution--which is a sort of negative visibility.

You don't want to accept a cashier's check because they're now so easily counterfeited with modern copiers.

 

[34rlsa]

Off topic a bit...

If you sold a vehicle and accepted a cashiers check that turned out to be fraudulent would your auto insurance cover the loss as a theft?

 

[cj1717]

I'm selling my 2001 corvette sometime this year. Just wondering what would be the safest way to take payment. Cash? Cashier's check?

or some type of online $ transfer?

It will probably be around $13,000.

I don't want to get ripped off by counterfeit cash or a fake cashier's check.

For a small amount like $13k, CASH.